Many players do not realize the variety that is available in online tournaments. It is essential to understand this variety because that will not only draw players to online tournaments but also help them to choose correctly.

At the outset a distinction must be made between those tournaments that award prizes based on how much a player wins and those tournaments that award prizes based on how much a player wagers. Strictly speaking the second type is not really an online tournament because it does not test any skill of the player. Such tournaments are usually promotional events outlined in the promotions section rather than in the tournaments section of the online casino. They encourage players to wager more and reward those players who wager the most. In these tournaments players are wagering with their own funds and obviously get to keep any amounts they win while playing.

In the real online tournaments all players are given the same amount of starting money by the online casino. They are asked to play on the same game and given the same amount of time to wager. The players exhibit their skill of playing the game and managing their bankroll. The players who are left with the highest balances at the end of the tournament get the prizes. The players’ balances at the end of the tournament are not cashable.

One way of classifying real online tournaments is by the nature of the prize pool offered to the players. In some tournaments the online casino offers a guaranteed sum of money that will be distributed among the winners in a manner that has been specified before the online tournament commences. This amount does not depend on the number of players participating in the event. However, most online casinos stipulate that if a nominal minimum number of players do not register for the tournament then it will be scratched. No matter how many players participate in the event the winners will get their stipulated prizes. If there are fewer players then the chances of winning are greater. If there are more players then the chances of winning decrease. Such online tournaments are often referred to as guaranteed prize pool tournaments. Usually the online casino charges an entry fee for participation in these online tournaments. However, some online tournaments do not have any entry fee and are known as freerolls.

Other online tournaments have what is known as pot prize pools. The entry fee paid by the participants is accumulated and that is distributed among the winners in a pre-decided proportion. Therefore, in pot prize pool online tournaments the prize amounts depend on the number of participants. In guaranteed prize pool events if the entry fees collected is greater than the prize pool then the casino keeps the difference and if the entry fees collected is less than the prize pool then the casino makes good difference. In pot prize pools usually the casino distributes the entire amount collected as entry fees. However in some cases it may retain a portion of the pot prize pool in order to cover its costs.

There is a type of online tournament that combines the advantages of the guaranteed prize pool and the pot prize pool. Unfortunately it is mostly used in online poker tournaments and is not that common in online casino tournaments. In this type of online tournament the prize pool is guaranteed by the online casino. However if the online casino collects more by way of entry fees then the excess amount is also distributed among the winners.